The Cyprus Parliament, on June 5, voted to amend certain Cyprus NID regime provisions. The amendments will become law following their publication in the Cyprus Gazette, which is expected to occur soon.
The annual NID rate amendments are applicable as of the start of the current tax year or calendar year (January 1, 2020). They include changes to the annual NID rate’s calculation and eliminating references to the Cyprus government bond’s yield as the minimum rate for the relevant portion of the NID rate calculation.
Other amendments relate to:
- capitalization of reserves that existed prior to the NID regime’s 2015 introduction in Cyprus (applicable as of January 1, 2021) and
- the income tax law language regarding the annual NID amount cap.
